EASTON, Md. - TeraWulf Inc. (NASDAQ:WULF), a company specializing in environmentally sustainable data center infrastructure for Bitcoin mining and high-performance computing (HPC), has reported significant operational growth in its September 2024 update. The company's self-mining capacity reached 10.0 exahashes per second (EH/s), doubling its capability from the previous year.
In September, TeraWulf mined 176 bitcoins, maintaining a daily production rate of around 5.9 bitcoins. The average power cost for mining each bitcoin was $35,109, which equates to an energy rate of $0.042/kWh, excluding proceeds from demand response and ancillary services.
The company recently completed the sale of its 25% equity interest in the Nautilus mining facility for $92 million. These funds are earmarked for the construction of the new 20 MW CB-1 facility at Lake Mariner, with expectations for it to become operational in the first quarter of 2025. TeraWulf has also procured long-lead items for another facility, CB-2, projected to be a 50 MW AI/HPC center, scheduled for early second quarter of 2025.
TeraWulf's current operational bitcoin mining capacity includes 195 MW at Lake Mariner and 50 MW at Nautilus. Despite the nameplate mining inventory estimated at 10.0 EH/s as of September 30, 2024, the actual monthly hash rate averaged 8.2 EH/s. The variation is attributed to several factors, including efficiency tuning, participation in demand response programs, and maintenance activities.
In addition to its bitcoin mining operations, TeraWulf has completed a 2.5 MW HPC/AI digital infrastructure proof-of-concept project at Lake Mariner. The CB-1 facility, currently under construction, is designed to support critical IT loads with advanced cooling and redundancy features typical of a Tier 3 data center.
TeraWulf develops and operates data centers with a focus on leveraging zero-carbon energy sources, such as nuclear and hydroelectric power. The company is committed to aligning its environmental, social, and governance (ESG) principles with its business objectives, aiming to provide industry-leading economics in mining and data center operations.
This news is based on a press release statement and reflects the company's performance and strategic developments as of September 2024.
In other recent news, TeraWulf Inc. has been making significant strides in its operations and strategic initiatives. The company recently sold its 25% stake in the Nautilus Cryptomine joint venture to a subsidiary of Talen Energy Corporation for around $92 million. This sale, which resulted in a 3.4x return on investment, will fund the expansion of TeraWulf's Lake Mariner facility, with a focus on high-performance computing and artificial intelligence, as well as bitcoin mining operations.
TeraWulf also reported a 130.2% year-over-year increase in its revenue to $35.6 million in the second quarter of 2024, primarily due to a doubling of its self-mining capacity to approximately 10.0 EH/s. In addition, the company has expanded its operational capacity to 245 megawatts following the completion of Building 4 at its Lake Mariner Facility.
In terms of analyst coverage, Rosenblatt Securities has initiated a Buy rating on TeraWulf, recognizing the company's strategic expansion. Similarly, Cantor Fitzgerald has maintained an Overweight rating, expressing confidence in TeraWulf's plans to expand its AI/HPC capacity by an additional 200 megawatts in the latter half of 2025.
In a significant development, TeraWulf has announced the engagement of Deloitte & Touche LLP as its new independent registered public accounting firm, replacing its previous auditor, RSM US LLP. This decision follows the identification of material weaknesses in internal control over financial reporting.
These recent developments highlight TeraWulf's ongoing strategic initiatives and operational growth, as well as the confidence expressed by analysts in the company's future prospects.
InvestingPro Insights
TeraWulf's recent operational update aligns with several key metrics and insights from InvestingPro. The company's significant growth in self-mining capacity and bitcoin production is reflected in its impressive revenue growth. According to InvestingPro data, TeraWulf's revenue grew by 197.49% in the last twelve months, with quarterly revenue growth of 130.16% as of Q2 2024.
This growth trajectory is further supported by an InvestingPro Tip indicating that analysts anticipate sales growth in the current year. This expectation aligns with TeraWulf's expansion plans, including the construction of new facilities like CB-1 and CB-2.
However, investors should note that despite the strong top-line growth, TeraWulf is not yet profitable. An InvestingPro Tip suggests that analysts do not anticipate the company will be profitable this year. This is consistent with the reported operating income of -$17.13 million in the last twelve months.
The company's stock has shown remarkable performance, with a one-year price total return of 324.32% as of the latest data. This aligns with another InvestingPro Tip highlighting the high return over the last year. However, potential investors should be aware that the stock generally trades with high price volatility.
For those interested in a deeper analysis, InvestingPro offers 12 additional tips for TeraWulf, providing a more comprehensive view of the company's financial health and market position.
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